The Effect of Remuneration Committee on Dividend Policy in China

Zhang Ya, Meysam Safari

Abstract


Since the 1990s, the corporate governance became a policy issue people continued to focus on in developed countries. After the Asian financial crisis, corporate governance reform becomes a hot topic in Asian countries and regions, especially, scholars study this topic just in recent years in China. China’ equity holdings of listed companies are different with other market. Majority stocks are concentrated in the hands of the company's internal management control, which has limited the development of the China listed companies in corporate governance. And this may bring interest conflicts among shareholders and managers. This study is aimed to check whether China’s corporate governance especially remuneration committee has effects on dividend policy (Dividend per share and Dividend yield) through some empirical works with the quantitative research methodology.
This research use regression model and ANOVA analysis to check the validity and reliability of independent variables(the existence of remuneration committee, number of independent directors in RC, RC size, BOD size, independent ratio of RC, CEO membership, industry, market value, total assets, total revenue and leverage).


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China Securities Regulatory Committee: http://www.csrc.gov.cn


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